I forgot to add I want the mandatory and the insurance that protects against theft. I may consider collision coverage as well, but not likely for a used car.
If you are taking the bus everywhere you go now, it doesn't sound like gas consumption will be that much of an issue (within reason), as you aren't going too far anyway. You can buy a car just a few years old with lower mileage and save a lot of money in the long run. A new car depreciates VERY fast. With a used car, you won't have a payment if you pay cash for it, and your insurance will be less.
I used to buy cars 2 years old that are lease turn-ins. Someone else would take the majority of the initial depreciation, and I'd get a car with 20k or so miles on it and save a bundle. The nice thing about lease turn-ins is that the previous owner is required to take care of the car during the lease period.
I actually do go pretty far for school (19 miles), but I will likely catch the bus when I do have to go up there.
I plan to have around $7000-$10000 between June-August of my own money. But that would be all the money that I would have... I am going to take out a loan no matter what I am about to buy.
But, what cars should I be considering? 2000-12? This will be my first car, so now I am really considering a used car under $7000 and I hear that if the car is cheaper, the insurance will be too.
Cars are a pretty personal thing. Have a look around at cars you see on the road and do some research on costs/safety/reliability etc...and get some online insurance quotes from say GEICO or whatever. I think edmunds.com has reviews...and the good thing about buying a used car is that you'll find reviews from people that have owned them a while. Don't forget that insurance/gas aren't the only expenses associated with owning a car. Regular maintainance (washing/tires/brakes/oil changes, etc) all add up. If you have a lot of student friends that don't drive, you'll likely also get asked for rides often
As fun as say, a 2004 BMW 330i convertible looks, it can be super expensive to maintain/repair should you have any problems with it.
If you buy something a couple years old, you might get a warranty with it. Japanese cars are known for being reliable and holding their value.
Thanks guys. Yeah I hear Honda and Toyota (Japanese brands) are typically the only cars you should buy that are around 10 years old. But I also hear foreign cars are more expensive to insure. I heard that all 2 door cars are considered sport cars, but I read something that says that's false.
As for the honda and toyota, I was looking at the civic and prius cars since they have really good mpg.
I know, if it weren't for that buses don't get me to where I need to go asap..... (brb later)
Hi there! Welcome to MyFICO community forums!
Cars are a very personal thing! I personally found success buying used cars in the past, however, the availability of used cars and the pricing of used cars is not ideal right now due to the shortage of inventory.
My advice would be to check out the Auto Loan Forum for advice on loan programs for your needs. Generally speaking you may get better rates depending on the type of car you choose.
If you are able to become a member of a credit union, you may have certain discounts available for both insurance and loan needs. Many members have joined online credit unions, if a local one wasn't available.
Good luck in your decision!